WORLD TRADE  
ORGANIZATION  TN/MA/W/18/Add.13 
4 April 2006 
 (06-1586) 
Negotiating Group on Market Access Original:   English 
  
 
  
MARKET ACCESS FOR NON-AGRICULTURAL PRODUCTS 
 
Progress Report: Sectoral Discussions on Tariff Elimination
 
in the Chemicals Sector  
 
Addendum  
 
Communication from the United States 
 
 
 The following communication, dated 3 April 2006, is being circulated at the request of the delegation of the United States.  
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I. INTRODUCTION 
1. This report has been prepared to inform the NAMA negotiating group of the work that has 
been done by Members interested in an agreement for tariff liberalisation in the chemicals sector.  
 2. Members from both developed and developing co untries have been exploring the possibility 
of opening markets for chemical products beyond what the tariff-reduction formula will achieve.  
They have discussed a range of issues, including product coverage, tariff treatment, flexibilities for 
developing countries and questions surrounding the criti cal mass concept.  This initiative would build 
on the Uruguay Round sectoral agreement on ch emicals – the Chemical Tariff Harmonization 
Agreement.   
 
II. PROGRESS TO DATE  
3. Participation
:  Since January 2005 there have been eight informal meetings of Members to discuss 
tariff liberalization for chemicals products1. Participation has broadene d considerably over time, 
beginning with eight Members attending the January 2005 meeting and rising to more than twenty 
Members attending the March 2006 meeting.  We note that participation at sectoral meetings rose 
following the educational session on sectors held during the February NAMA week and hope that 
delegations now have a bette r understanding of the mechanics of sectoral initiatives. 
 
 
                                                      
1 Meetings were held during January, March, April, June, October and November during 2005 and 
during January and February of 2006. TN/MA/W/18/Add.13 
Page 2  
 
  4. The International Council of Chemical Associations (ICCA)
2, an organization of leading trade 
associations representing almost 75 percent of chemical manufacturing worldwide, actively supports a sectoral initiative to liberalize chemical pr oducts in the Doha Development Agenda. 
 5. Communications
: In July 2005 a communication on market access for chemical products was 
circulated under the co-sponsorship of Canada, Ja pan, Norway, Separate Customs Territory of 
Taiwan, Penghu, Kinmen, and Matsu, Singapore, Sw itzerland, and the United States (TN/MA/W/58). 
In March 2006 Japan circulated a proposal on tariff liberalization in the chemicals sector.  The United States has reported regularly to the NAMA negotiating group on the progress made in the chemicals sectoral initiative and will continue to do so. 
 
6. Product Coverage
: In the Uruguay Round, a group of WTO Members3 agreed to harmonize 
tariffs on a broad range of chemical goods to promot e liberalization in this sector and to develop a 
more predictable and transparent global tariff struct ure for this industry. The result was the Chemical 
Tariff Harmonization Agreement (CTHA), which led to a substantial reducti on and harmonization of 
chemical tariffs in HS Chapters 28-39.   
 7. Current discussions involve the expansion of both product coverage and participation in that 
Agreement, although the focus continues to be on pa rticipation.  Japan has proposed the addition of 
semi-processed rubber (HS 4002-4008) to the pr oduct coverage, an idea which has received both 
support and resistance from certain Members.  Othe r than Japan’s proposal on semi-processed rubber, 
no additional product coverage has been proposed.   
 8. Special and Differential Treatment
:  Participants have discussed that to obtain a meaningful 
outcome, a balance needs to be struck between th e need for significant market opening by a critical 
mass of participants and the need to address c oncerns of developing countries. Members have 
discussed a variety of measures to account for the needs of developing countries, including longer 
implementation periods for all chemical product s, longer implementation periods for certain 
products/sub-sectors, zero for “x”, and participation in  certain subsectors.  The United States intends 
to explore these options in new detail a nd also encourages suggestions from others. 
 9. Critical Mass
:  The chemicals products group has not reached any firm decision regarding 
what level of participation will be required in orde r to conclude a successful agreement. As a starting 
point, the group appears to agree that all CTHA partic ipants should take part in this initiative.  There 
also appears to be agreement that the chemic als sectoral initiative should include key traders, 
producers as well as certain Members that may not curre ntly be major traders, but have the potential 
to realize growth, investment and significant trade in this sector. 
 
 
                                                      
2 The International Council of Chemical Associations  is composed of Conselho das Associações da 
Indústria Quimica do Mercosul (CIQUIM), Argentina, Brazil, Paraguay and Uruguay ; European Chemical 
Industry Council (CEFIC); Japan Chemical Industry Association (JCIA); Asociácion Nacional de la Industria 
Quimica (ANIQ), Mexico ; Canadian Chemical Producers' Associa tion (CCPA); American Chemistry Council  
(ACC), United States; New Zealand Chemical Industry Council (N ZCIC); Plastics and Chemical Industry 
Association (PACIA), Australia.  
3 Current CTHA Members include:  Australia (de facto), Bu lgaria, Canada, the Czech Republic, 
Ecuador, Estonia, the European Union, Hong Kong Ch ina, Japan, Jordan, the Re public of Korea, Mongolia, 
New Zealand (de facto), Norway, Panama, People's Republic  of China, Qatar, Singa pore, Slovakia, Switzerland, 
Taipei Chinese, the United Arab Emirat es and the United States of America.  TN/MA/W/18/Add.13 
 Page 3 
 
 
  III. NEXT STEPS 
10. In order to advance these discussions, we have  developed this progress report and the attached 
work schedule to let Members know our thoughts about  moving forward.  We ha ve also provided data 
on trade in chemicals to further inform our thought s regarding participation and critical mass.  Our 
goal is to work with interested Members on the development of a “second generation” proposal for 
presentation and submission during the next NAMA  week, April 19-21.  We would then accept 
comments and revise the proposal accordingl y prior to the April 30 deadline.  
 
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